US unveils new export controls to tighten grip on China’s semiconductor sector

The United States has announced new export controls targeting quantum computing and semiconductor-manufacturing equipment, intensifying efforts to limit China’s access to critical technologies.

The latest measures, unveiled by the US Department of Commerce on Thursday, are part of a broader strategy to curb Beijing’s technological advancements amid escalating tensions between the two superpowers.

Under Secretary for the Bureau of Industry and Security, Alan Estevez, highlighted the significance of the new restrictions, stating, “Today’s action ensures our national export controls keep step with rapidly evolving technologies and are more effective when we work in concert with international partners.” He emphasized that aligning controls on quantum and other advanced technologies would make it “significantly more difficult for our adversaries to develop and deploy these technologies in ways that threaten our collective security.”

The new controls build on existing US efforts to limit China’s access to advanced chips and related equipment, reflecting a strategic push by President Joe Biden’s administration to leverage allied nations in this technological standoff. Following the US announcement, the Netherlands also tightened its export controls on semiconductor-manufacturing machines. Dutch Foreign Trade Minister Reinette Klever cited rising security risks due to technological advances and the current geopolitical climate as reasons for the new measures.

Japan has previously joined these efforts, implementing its own restrictions on advanced chip-making equipment. In response, China has accelerated its drive for self-sufficiency in advanced semiconductor technology, investing heavily in its domestic industry. Despite these efforts, recent analysis by TechanaLye, a Tokyo-based semiconductor research firm, suggests that Chinese chips are still trailing Taiwan Semiconductor Manufacturing Co Ltd by about three years.

China has sharply criticized the new US controls, with Foreign Ministry spokeswoman Mao Ning accusing Washington of disrupting global supply chains and violating market principles. “This does not align with the interests of any side,” Mao said at a press briefing.

As the US and China continue to clash over technology and trade, the latest export controls mark a significant escalation in their ongoing rivalry, potentially reshaping global supply chains and technological landscapes.